Is ACE Alpha Tech overvalued or undervalued?

As of 29 August 2025, ACE Alpha Tech's valuation grade has moved from does not qualify to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued. Key ratios include a PE ratio of 15.99, an EV to EBITDA of 11.78, and an EV to Capital Employed of 37.95, which suggest that the stock is priced high relative to its earnings and capital efficiency.
In comparison to peers, TCS has a PE ratio of 22.65 and an EV to EBITDA of 15.96, while Infosys shows a PE of 22.39 and an EV to EBITDA of 14.69, both indicating that ACE Alpha Tech is lagging behind in terms of valuation metrics. Notably, the company has shown a stock return of 0.99% over the past week, outperforming the Sensex, which declined by 1.84%, but this short-term performance does not mitigate the overall overvaluation concern.